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tv   Power Lunch  CNBC  April 3, 2014 1:00pm-2:01pm EDT

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driving things down lower nearly 1% some fame names along with bio techs started to go lower. that's all for us. have a great rest of the day. "power lunch"ics up this market story. much more on hft right now it. >> announcer: "halftime" is over. "power lunch" and the second half of the trading day starts right now. >> scott, thank you. the dow dips its toe into unare the chaed waters and decides, uh-huh. too hot or cold for me. where the dow is, down by about 21 points. the s&p record territory, too. down 5.5 or thereabouts and the nasdaq, the biggest decliner in percentage terms off a percent, 43 points. and the target, u.s. attorney for new york southern district issuing a warning. a significant financial institution, one of the big banks, will be charged with a felony soon.
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will it be one of the big banks? we'll explore that. and the great high frequency trading debate. got a computer like that? that's not the one we're talking about, folks. a lot more than that. let's listen in. >> it's great to see, bill, instantly throw at brad, the idea that he's doing all this to promote a business model. >> he said that and also said, shame on you. how do you react to that? >> yeah, so -- >> i'll say it again. >> so -- i think he's outrageous. i think he's part of the problem. >> today we will take you through the arguments that have ignited a furious debate. one small, we hope, understandable step at a time. first, though, to sue on a day where the dow hit that record and then fell back. sue? >> yeah, indeed it did, ty. stocks hitting that record high today. the question is now, can the gains continue? are we on the verge of a larger correction ahead? shortly after the opening bell the dow did hit an all-time high intraday of 16604.15. you can see things have fallen
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but certainly a milestone day. the transports also making a new high, and the s&p. so we have a collective $40 billion worth of advice right here on "power lunch" for you from our guests, dave and the ci aro at atlanta trust and joe duran, ceo of united capital. welcome to "power." nice to have you here. joe, start with you, if i could, because you're a little nervous. we're into spring. april is kind of a difficult month for some, because we do have tax selling that usually kicks in. tell me what you're expecting out of this market? >> i think what i'm seeing is a shift away from very speculative names. which kind of is telling us that i'm not the only one who's concerned that we've gone a little too far, too quickly. secondly, i'm very concerned be a the flattening of the yield curve. interest rates appear to be flattening out, and that is seldom a good sign for a high growth economy. so i'm concerned the bond market is telling us that growth is coming, but not in the speed we would like. there's a lot of talk of the
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second hatlf picking up steam. perhaps that's not what will happen. >> dave, you don't seem to be as worried or share the same concerns, anyway. is that a correct read? >> pretty much. i think the u.s. economy is poised to do better. we've had weather-induced slowing, we've seen in the december through february period. but more recently seen better signs. i think seeing march in, vehicle sales, get above that 16 million mark is very important. a great consumer barometer, because it's big ticket discretionary items. the ism survey go up and leading indicator component, and unemployment imclas continue to be low and we'll begin to see a better pace to payroll job growth. we think that 3% gdp growth even with a slow start is where we'll a end up in 2014. that's a critical outcome for the sustainability of the bull market. >> what parts of this bull market would you be investing new money in? >> well, i think you have to
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start realistically with where we are. we are in a fairly valued to fully valued market. so we don't view that there are a lot of hot sectors out there. what keeps us cautiously optimistic on the market is we've seen a breakdown in correlations. the implied correlation index on the s&p, back to a stock picker's market. we think a quality rotation is underway and looking for companies with a recurring reserve revenue stream, with strong free cash flow generation and where valuations are reasonable. you can find those across sector selective areally. >> joe, you say itch swing of you 0 the more highly speculative stocks and into the better value, for lack of a better word, also the bigger, safer stocks? >> yeah. you'd rather own a microsoft than an am soazon. you might prefer to own google than a netflix. seeing a ford rather than a tesla. seeing a shift to more
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reasonably valued. that's what happens when the market gets a little too speculative, so i think we're on the same page, that you want to continue to own stocks. frankly, they're the only game in town, but maybe companies with very predictable revenues with higher growth, procter & gambles doing better than some of the more speculative names. you think that's where you want to be. >> gentlemen, stick around. i want to turn the conversation to the hot topic of the week. high frequency trading. the value of a millisecond and what investors will pay for it has been a big part of our high frequency discussion this week. a recap from the flash boys author michael lewis, i.e. ex-ceo brad cats yama and labatts ceo bill o'brien. >> we are not as fast as the fastest hfts. we've were slowed down hfts ain't to react on this change. if a mutual fund or hedge fund gives an order it's our
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responsibility to price it -- >> the same hft customers we do buy producing a valuable service to the market. >> let's just -- >> it got deep, hairy, very technical, gentlemen. dave, let me start with you, and if i'm understanding your position on high frequency trading, it's that you are a long-term trader, and that fundamentally, you're happy that there's some light shed on these practices, but that fundamentally, it doesn't really matter to you whether you bought the share at $30 and a penny, or $30 and 1.111115 cents? >> well, i would say this. first of you a, best execution on behalf of clients is always the standard that has to be adhered to, and a level playing field is a very important part of that. the point i would make, though, from an individual investor's standpoint is that it's a great time to be a long-term investor and not a short-term trader.
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if you're not engaging in high turnover portfolios. if your investment time horizon is in months and years instead of seconds and minutes, this is still an interesting and important issue, but it's not going to be a makeor break issue in terms of your portfolio. >> joe durant, you read the book. did it scare the begeezus out of it? >> it actually did. i read it on the flight from new york yesterday. the entire book, and it frankly reminded me a lot of what we saw during the mortgage crisis, which is a lot of exotic products that are very opaque but nobody knows how they work exactly. that nobody understands who's making the decisions. in this case computer computers, and that nobody really understands the implications or who's making what and how. when you have that opaqueness, it's seldom good for most of us long-term investors. and what i would suggest is that the regulators, unfortunately, cannot keep up with the rate of
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innovationened, and we don't understand when most of these traders who do not really provide liquidity. they're bridging functions. they own stocks for one second, maybe. that there's a real probability that we don't understand how things might break, and what i've seen -- >> exactly. >> doing this over two decades now, that the ag market acted in peculiar ways that i can't see logically why the market starts up 50 and goes down 150 then closes up 50. the volatility month to month is not higher but the volatility during the day is very peculiar. and this book, i think, is very important, and it's going to start a very big debate internally about what we should be doing as a country to address this. it goes to the heart of people's confidence in our capital markets. >> absolutely. dave, let me turn you to that, because one of the issues with the high frequency trading that has been going on is the cost of execution goes up. the bigger your trade that's in
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the system, the higher the cost goes, and incrementally it can go up a full percent or so. that eventually gets passed down to the individual investors, whose money is being managed by a pension fund, or an endowment or something along those lines. so it does impact the individual investor. maybe not directly, but indirectly. >> i agree that it can, and that's why it's good that a light has been shown on this. the challenges part is, obviously, it's an incredibly complex, technical issue, which doesn't often stir passionate debate, but has here. i think maybe we're moving into a phase where less passion and more facts need to be gathered and i think that will happen both from a regulatory perspective and an industry perspective, i would certainly endorse that. >> gentlemen, thank you all very much. appreciate it. let's go over to dominic chu for a market flash. dom? >> check out shares of facebook. at session lows now. stock losing another 4% today.
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you can see currently just towards session lows now. since hitting its high of $72.59 march 11th, stock down more than 15%. another one of are these momentum type stocks that are getting hit in the current market. back to you, tyler. >> i'll take it, dom. thank you. more headaches for citigroup. the "new york times" reporting federal authorities are launching a criminal investigation into whether citigroup ig are noed warnings about the $400 million fraud that took place in the banking giant's mexican division. citi and the fbi declined to comment on the report. shares of citi down almost 1.5%. meanwhile, u.s. attorney general preet bharara taking on the big banks. would go that story, kate. >> thank you. it's no secret the u.s. attorney in southern new york is irked with the big banks, compliance he finds lacking and's presumptuouses in offensive, other appears to. at a securities industry
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regulation conference monday he warned wall street in no uncertain terms to watch itself. >> in my view after arthur andersen, the pendulum has swung a bit too far and need to swing back a bit. and so you can expect that before too long, a significant financial institution will be charged with a felony or be made to plead guilty to a felony where the conduct warrants it. >> part of his rationale, the gloomy prognostication, executives resigning in shame simply don't come true. in fact, he's been monitoring companies that warn of dire consequences and finding in many cases they prove to be baseless fears. >> what i have found tipic willy is that in reality as we had suspected, the sky does not fall. fk in, sometimes the sky brightens. stock prices remain steady or go upened a the company is viewed as putting problem bees hind it. clintsz and customers and key employees don't bat an eye and
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sometimes the ceo even gets a raise. and so this repeated chicken little routine, i will tell you, sometimes begins to wear thin. >> now, of course, that reference about sometimes a ceo gets a raise, felt to many, myself included, a reference to jpmorgan, given dimond a raise in 2013 despite a number of regulatory issues. in any case, these feelings made to banks like jpmorgan and others in which he's reached settlements. now citigroup needs to take note. >> investors certainly are today off 1.5%. thank you. ty, over to you. >> switch it over to dominic, looking at a couple ipos that began trading today. >> a lot of those ipo stocks in the arena, start with chinese i.t. services educator international moving higher after a price 15.3 million shares, $9.
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currently up 13% on the trading day. corium international, not quite as successful. the drug delivery systems provider, 16.5 irshas, $8. just about flat for the session although climbing back from lows. two big ipos priced tonight. grub hub, leading mobile platform for restaurant owners, 23 dollars to $25 a share, what we expect. and ims health holdings one of the biggest online health care data managers in the world looking to price a big kun. 65 million shares at $18 positive 21 duck as pop. of course, a $1.2 billion ipo deal. again, names you'll want to keep an eye on both now and after the close, tyler. back to you. >> domic in, thank you. the department of transportation is launching a new campaign against texting and driving today. here is the commercial that's about to hit the airwaves and the net. >> how many letters? >> five letters. >> just think about what am i doing right now?
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>> smile. smile? >> uh-huh. >> this is so easy. >> nobody likes to be stopped by the police, but if i'd seen her texting while driving and given her a ticket -- it just might have saved her life. >> 71% of teenagers and young people text and drive according to the department of transportation. 78% admit reading texts while driving. sue, frightening stuff. >> it really is, ty. absolutely. all right. we have steve up next. right, steve liesman? >> and larry, too. several bright points on the economy. i'll give them to you next. >> the biggest week weakness in the whole country right now, softness in business investment. cap x and discouraging jobs and wages. i'll still play from the optimistic side on the great
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american stock market. you'll see why, next up. we know we're not the center of your life, but we'll do our best to help you connect to what is.
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i'm taking off, but, uh, don't worry. i'm gonna leave the tv on for you. and if anything happens, don't forget about the new xfinity my account app. you can troubleshoot technical issues here. if you make an appointment, you can check out the status here. you can pay the bill, too. but don't worry about that right now. okay. how do i look? ♪ thanks. [ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app. welcome back to "power lunch." i'm eamon javers in washington where cnbc learned iv eint acti brokers announce the first large retail brokerage 0 of 0erring customers to iex. so much attention in the wake of mike's lewis' book and new
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trading plastform designed to allow customers to avoid high frequency trading technologies and techniques. interactive brokers offering its customers the ability to click on an icon and choose directly to route their trades to iex, the first time they've had that ability. that is expected to be online within the next five to ten days, that option should be available for customers of interactive brokers, and we expect to see that announcement as early as this afternoon. back to you. >> ayman, interesting stuff. we asked brad about that and whether business had really picked up when we had him on "power lunch." he said, yes. ever since the publication of michael lewis' book, it had gained quite a bit of momentum. 's pras understandable. right, steve? given the controversy over high frequency trading. >> now we can all get on the super highway and take a but trade here. right? >> what's interesting, sue. >> go ahead. >> what interactive brokers is
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likely to say is that they're not in a position, they don't want to take sides in this high frequency trading debate, just offer customers the ability to go directly to iex, if that's what they want. they have historically been among the first to connect to any any exchange, were ut this will offer customers an opportunity to go directly to iex. so one of the things we'll have to watch and see is how many customers are motivated by this whole flash boys debate and decide, you know what? i want to avoid hft and only go to iex. whether or not they get the best price there, is there an ideological decision customers are making as much as a business decision? that has to be seen here. >> iex is appealing to those who want to avoid high frequency trading or don't want to be in that it stream, because. >> right. >> iex ostensibly creating speed bumps along the way? is that -- >> exactly. it slows down the order flow so that they -- >> nobody can get ahead of you. >> the orders aren't seen by the high frequency traders.
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>> and also said they're going to limit order types as well. they're deliberately limiting the complexity that's built into the market structure over the past several years with all of these convolutedened a difficult to understand order types, they're saying they're streamline that. that's the pitch. >> to that point, streamline that. two quick questions. is iex seen as a white knight here? the good guys. the white hats rather than the black hats? >> certainly portrayed that way. >> yes. >> the mike lewis take. the media bought into that. secondly, regarding the iex trades, will it be cheaper for customers? that's what i want to know. commissionwise, whatever. >> i don't think we know that yet. >> that's a key point. >> it is, but also, they regulate their trades so that what they do is avoid the high frequency trader. >> yeah, but the critical question becomes the volumes. right? you want to trade in the market with the most volume. if you're saying i'm going to ob be outside of that exchange or
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the other exchanges with the volume, then i think you'll worry, are you getting the best price out there? >> you have to. that's the law? the regulation? >> they have to show they're getting the best price. >> barry, unless you specify sand say only a taking it -- >> you might cost yourself money in the long run doing that. >> my point. >> the question issish did- >> ayman -- >> people will be fired up saying i'm only going there. a small seg mtht of the market that does that. >> aquestion for larry. the question is whether or not the main street popularity of a pook like "flash boys" will nudge the sec closer to figuring out some way to either a regulate high frequency trading, maybe by, as charles schwab suggests, putting in a transaction fee, which would stop stock stuffing, or, you know, because the popularity of this book, once you've been on "60 minutes," once you've been on cnbc, once main street reads the book, how do you think mary
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jo white will handle publicity surrounding this? >> ms. white specifically and the s.e.c. generally want any excuse they can to come in and regulate, all right, and look for bad guys. that's the deal. she's a cop. with all due respect, mary jo white, i have a lot of respect and have met. i'm saying the new rule in the new world order post2008 and in the last year or to two, s.e.c., u.s. attorneys they wants to get in. they want to get in and they're going to get in, and -- >> and this is the part for the fact that the s.e.c. for some years was absolutely not -- >> i understand. >> i am very worried about the regulation. ayman, you and i worked on a story that dealt with the? ed guys in chicago don't have the same access as guys in new york, because an elk tron takes longer to go to chicago than it does to round trip in new york. >> yes. >> as far as i know, there is no
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particular regulation you could pass unless you delayed everything, until the farthest possible point that a electron would take to trade, you'd have to have a computer up in outer mongolia, the gobi desert out there, that would be the timetable. i don't know you could do anything. >> the nsa could do it. >> maybe repeal einsteinian physics, as far as i know. >> e in can't do that and would pass it on to verizon. >> remember the "60 minutes" piece with michael lewis, sunday night, teeing off this whole debate. earlier in the week we asked s.e.c., saying the stock market is rigged. is it rigged? what's the s.e.c. response and they declined to respond saying we're not responding to this book. not going to reply. it's the s.e.c.'s job to make sure the markets aren't rigged. if they're not capable of issuing a statement saying they're not rigged. >> they're not. >> not putting that statement
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out on monday or tuesday of this week. later in the week we heard mary jo white, i think just yesterday respond to our questions from our camera saying the market is not rigged. that was a couple days into this debate, very fast are and furious, as you know better than anybody. >> don't forget, this is bure create consider politics at its best. the s.e.c. put its stamp of approval on all of those market conduits. right? they wr the ones that allowed it in the first place. >> right. >> basically now what michael lewis is saying, whether you agree or not, husbais ayers is, were wrong. the s.e.c. can and everybody allowed the markets rigged to be debt tra minute of the small intester. i don't happen to agree with that but i don't know everything there is to know. if the s.e.c. has to, what is it? cyk, cover your keys ister. >> yes. any appetite on capitol hill to take on this issue? they've got a lot of other
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things on their plate certainly, but once you get a book liking "flash boys" hitting the streets, they're going to hear from constituents. what kind of appetite is there on capitol hill to take this on? >> we've seen michael lewis books in the past really change the debate here in washington. i think the big short, michael lewis' earlier book, subprime mortgage organization changed the debate here in washington. a lot of senators and ebb ins of congress were able to read the book and for maybe the first time in cases understand what happened there'si think a similar dynamic will happen here. a lot of attention, real interest in doing something. whether congress is capable in this political climate of doing anything at all is a separate question. >> all right. thank you very much. ayman, thank you, steve, thank you larry. great to have you on the show. we'll see you on a regular basis. >> thank you. we'll continue the great high-speed trading deenlbate. what's the solution? maybe taxing? i knew that would get a rise out of larry. >> here we go again. >> here we go. get the smelling salts.
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taxing traders. a transaction tax. we have a congressman waiting in the wings, straight ahead. >> announcer: the cnbc live data board is brought to you by -- cme group. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. how did i know? well, i didn't really. see, i figured low testosterone would decrease my sex drive...
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financial noise s.
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welcome back to "power lunch." it's been a very good week for intuitive surgical. stock up 4%ant coulding to rebound after the fda ill v prooed a robot system, da vinci, or a new version of it. stock up 25%. again to the upside in today's session. back to you. >> dom, thank you. negative day in the metals markets overall. a look where prices are closing in the gold market. down about $5 or $6 in gold. $6.30 to be precise. a loss of better than a full percent, percent and a quarter in the silver market. copper on the negative. red arrows across the board today. the bond market now. interest rates in focus. a lot of people debating whether or not stocks can continue going higher if interest rates go higher as well. what do you think? >> i think that what i see on the interest rate side isic maing mequestion the longevity of the ongoing stock rally.
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how long it goes? hard to say. usually people run out of money before equities run out of gas. intraday of 5s. down a basis point. lowest yields since september. if you look at a 30 year, down three basis points, hence that big flattening still remains and continues to some extent. look at a ten year, which is eventually unchanged, still hovering at the lowest yields since january and maybe the last charts the most interesting. today after the ecb meeting, because the currently hovering at lowest rating since february. back to you, tyler. high frequency trading. three words dividing wall street and plain street. accusations of rigging the markets. what's the truth? dominic chu investigates. dom? we'll be right back. dom? where you at? he'll come back. i promise. >> announcer: the "power house"
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my question of bill, if watching, launching these accusations. >> i'm launching accusations? >> what data do you use for price trades on direct? >> the direct feeds and the sip in combination. >> i asked a question. not what you use to route. to price trades in your matching on -- >> we use direct feeds. >> no. >> yes we do. let me talk. you had a 300-page commercial. so let me talk. >> ah, yes. high frequency trading smack in the middle of the spotlight. allowing clients to use that anti-hft, iex platform. next to me, dom, looking at arguments made by iex on the ai >> and brad by iek laid out examples how public equity
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markets may be ig ared against investors. one example pretty much presented in the book. hypothetically a trader in new york city would have an order, block order for say 10,000 shares of stock to buy. he or she sees it filled at the entirety at the market price. that trade travels across multiple platforms across the information super highway and head for exchange setters somewhere in new jersey where the order could be filled. a portion of that buy order would be filled at the first or closest venue. this one right here. say for 1,000 shares. it's there that the hfts would come into play. they're super fast computers and trading instructions or algorithms see the shares, get bought and speculate the order is probably part of a much larger order that hasn't hit any other market center yet. so they're guessing. it's using super fast pipelines, the hft could then buy shares at other venues faster than anyone
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else giving them a chance to speed ahead of an order and turn around and sell it at a slightly higher price. now, hfts are making a bet, and have determined that the odds of success are high enough that to take a chance on predictsing the same trade they saw happen here at the first seen venue or happen at others as well. is that really front running? that's the question. not even katzyama know what's coming down the pike and admit it is a bet. a high-speed, highly educated bet. does that mean the market is actually rigged? that, of course, sue, you need to decide for yourself. >> absolutely. people need to decide. the appearances made it feel rigged, one of the things perhaps. dom will stay with us and we bring in bill karsh to join the conversation. a special adviser with the national stock exchange. one of the main issues, front
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running was made illegal a number of years ago but people out there feel as though, as dom illustrated, even though they don't get a complete peek at your order, they have a good bet as to what your order is. some people call that legal front running. is it? >> i don't believe so. first of all, most orders are limit orders. so if a client is going to be expected to pay out to a higher price, they're not market order. they're only going to take the liquidity at their price. if they only get 5,000 shares, the 5,000 shares are done. if a high frequency trader gets long, he may have to turn around and sell it for a loss, as you've kind of talked about. >> the interesting part about this, this is specific towards market orders in general, go out, sweep were liquidity. go to one venue, pick up all the shares, go to another one, take all those shares up. that's where the rubber meets
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the road. it's about a market order, but that's one tool in a trader's tool kit. is that right? >> absolutely correct. most of limit orders today because people know there's limited liquidity in the market and use them mostly. >> what about the argument high frequency traders put out that they add liquidity to the market? i talked to two big hedge fund guys who say maybe at small shares, small order of shares, number of shares, they do add liquidity, but if i'm trying to sell 200,000 or 300,000 shares of ibm, it's sucking the liquidity out. and itic ta takes me a long ti get the trades off? >> in response, they've cut up their orders to algorithms. a large 200,000 share order, it's not in the marketplace at one time. it's done throughout the day. >> should it -- shouldn't it be aible to be put in at market at the same time? >> institutions are not getting liquidity from big brokers,
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because it doesn't pay to principally trade and put up a lot of capital, because you can't, the capital's not being rewarded with returns. so -- >> bill, here's an interesting point. you were a former exchange executive who now, woulds for another exchange company. in your experience, you come from a certain point of view in this whole discussion, can market structure beics if the to not accommodate this type of trading behavior, or should we accept this as part of the overall system and these guys need to make their buck like everybody else does? >> work around it, yeah. >> the market evolved. it used to take a day, today itic tas a second. now sending orders, they're not represented in the market. they're hidden in a location that nobody knows they exist. if i'm a retail investors, i would never send my orders to a dark poll. they're not expressed in the national market. so
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ex iex is not a new idea. other places have already allowed you to pick and choose who you want to interact with. the market evolves. it will change, get better, it will continue to be a great place to do business. retail investors are getting a great deal. you also talked about rebates, $7 a trade. couldn't have that without rebates. >> all right. thank you very much. >> my pleasure. >> thanks for coming out and joining us. >> thank you. dom, as always, thank you. see you in a couple minutes. ty? over to you. >> we'll carry on the debate before it xpleexploded on "powe" tuesday, it was on the radar of some members of congress. keith ellison of minnesota is one, member of the house financial services committee who introduced a bill last year to tax transactions basically high-speed trades and others. congressman, welcome. good to see you. >> thanks for having me on, tyler. >> i'm curious as to how you view the discussion of high-speed trading and whether you think a tax on it or other
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financial transactions, which i think is what you actually introduced, would curb it? >> i welcome the conversation. as a matter of fact, i was really concerned about flash crashing and front running and sort of these kind of trading procedures. that really don't add value to the market. they don't help connect investors to high-value companies. they just help folks with fast computers figure how to pick off wafer thin margins of profit, and if you tax those, those trades would have to be more thoughtful, more designed to connect investors with real value, and they would discourage this practice. in addition to that, they'd help our country meet some of its fiscal needs, which i think are really important. we're oveve here debating wheth to fund meals or wheels or headstart, the truth is we can make a more balanced, predictable market and help cover our nation's expenses. >> a tax on a transaction might discourage or reduce the profitability of the transaction, but if the
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transaction itself is regarded as somehow unfair, shouldn't you just ban it? not tax it? >> well, here's the thing. i think that we want to have the lightest touch that we can in the market. i mean, i think there are a good, good ideas how to approach this, butality the end of the day, if you have somebody who's making say a legitimate trade and then the computer, somebody else's super fast computer sees that trade being made and runs ahead of them, to drive up the price, and then makes it more expensive to the investor triy trying to make that purchase. that practice may be a legitimate trade to be made, but this super fast computer, this flash algorithm driven trades actually made that trade more expensive and don't bring any more value to the market and actually i think we should have some sort of extra expense associated wery that trading decision that would discourage it. >> thank you for your point of
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view. appreciate it. >> thank you? dominic, a market flash. >> tyler, this one here is anadarko petroleum, apc. in a bloom wereberg report, the epa and just is department plan to announce an agreement today related to its liabilities in a tronnics case. a $25 billion lawsuit brought by the u.s. and tronics which tests whether money can be recovered from a successor to a polluting company even after a bankruptcy cleaned the slate for that company. this case a very big one for corporate's action watchers. that stock currently trading the way it is now. >> thanks, do many. obamacare, a tough sell for millennials. the voice is back, and will tell us why. back in a minute. >> announcer: next, the "powyou are house a a are" power house." are" power ho" these don't look clean.
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a little problem with "power house." over to you. >> some names like vertex, under pressure, although steve weis on "half time" says the large cap bio tech is still intact. seeing those imin as trade to the down side. here's what's working. semiconductor stocks. some companies that power smartphones and tablets with chips, those stocks trading in the green. once again, highlighting that broader rotation we've been seeing out of new tech and into old tech. tyler and sue? back to you. >> thank you so much, seema. you know, getting young people to sign up for obamacare has been one of the government's biggest challenges. why is it so difficult getting
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you know, getting young people to sign up for obamacare has been one of the government's biggest chals. not all that easy for employers. bertha coombs is with us. i thought it would have been. apparently not the case. >> in some reasons it may be because of the aca. the rule letting adults between children on their plans until 26. mom and dad may be covering workers who could have employer coverage. like this 25-year-old, a marketing account executive in new york whose work health plan would have cost him more than $100 a month. his dad able to do it for less and so he's pocketing the cash. found this 2010 while more workers under 30 gained eligibility for benefits up more
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than 4%, big firms seen a 7.6 of% drop in those workers actually signing up for coverage. in some cases still opting out, despite new obamacare mandates. >> a lot of the individual mandate that takes effect really will be happening with 2014 tax return. so a lot of this age group really, they just haven't seen the full impact and awareness yet. >> they haven't yet. they'll see it over the next couple of years. an executive at a big firm tells me, sue, this is becoming a sensitive issue, because they are now seeing more costs with older workers keeping their kids on longer. >> absolutely. >> read more about it on cnbc.com. it's a very interesting trend. >> thank you so much, bertha. appreciate it. scoot in here, ty. good to see you. >> just stopping by. i'm going to move sarp sarah's
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chair. tell us who the millennials are? >> born between 1982 and 1993. i was important, born in 1993. i fall into this. >> these are people i hate, basically. >> learn to love them. >> learn to love them? why aren't he eager to buy into insurance plans? why? too costly? >> exactly. they just don't have the money. about half of them when they graduate either don't have a job, given up on a job or under employed. waitressing. >> no job, given up on a job, living at home. some of them. >> that's part of it. 21 million living with their parents. the age 26, able to be on parents' plans, talking 20 to 26-year-olds, half the population. >> do they think the usual rules do not apply to them? >> they think they're superhuman. nothing can go wrong. they're young, optimistic and feel they're healthy and going to get better anyways, if they get sick. >> they're going to learn some
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things. aren't they? >> going to have to. >> how do you change their viewpoint and get them, you're a marketer, how do you get them to realize that this is something they ought to consider? >> tell you what you don't do. you don't have the ads they have now through obamairka, ma len yam ma len yillennials getting drun. say this is how it will help you. here are the reasons why and first try and help you get a job first. >> get a job, obviously, need anning in. >> and worried about student loans. >> student loans and millennials i'm sure saying it comes do unto, am i going to pay for an apartment, to are a car? >> get out of living with my parents? >> do this and then last on the priority list, potentially, is health insurance. >> that's the problem. exactly. >> dan, thank you. >> thank you very much. >> very good. i like him. pease a good one. one of the good millennials. sue, they say you'll read
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something, i'll do it for you in case. biggest winners in today's trading coming up next. first, though, what mandy has for us on "street signs." somewhere to be found. >> here i am over here on the set already and rearing to go. google versus google, ty, and why herb says he's actually okay with google investors having no voice. the single biggest threat to the fundamentalbusiness model of yelp and the scrapping of once great american cities and how china is benefiting from it. we'll explain all that and, of course, lots, lots more when we start our show in about five min minutes' time from now. meantime, a break and then back to "power lunch." nch."p to 75 ms to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity.
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welcome back to "power lunch." barnes & noble hitting session lows this afternoon after liberty media said it sold almost all its stake in the book store chain. 90% of its stake, retain a small portion ending a three-year bets struggling retailer would emerge as a dominant setter of e-books. 1yu679 off session lows. back to you. >> interesting market, dom, with the nasdaq leading us to the down side now. the market shows the dow down about 14 points. we were positive. hit new all-time highs earlier
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today. nasdaq down and s&p as well. newfield, a big percentage winner up 3 1/3 as well. >> and the only thing our big debate lacked, kenny. i know he, a, understands this stuff, b, is passionate about it. you've sat back, listened. what do you think? >> listen, this is a topic, this is a subject, it is ripe right now for discussion. right? but what we should really talk about, talk about the whole thing. not just one aspect of it. this is one aspect of current market structure. it's the total picture we really need to talk ab's one that starts from where we were, what happened along the way and how we got to where we got and how parts of the high frequency trading, parts of the predatory high frequency trading where it came from. >> you heard charles schwab say
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put a fee on these kinds of transactions. congresspeople saying put a tax on these it kinds of transactions. what does that do? >> they've talked about that. that would several crimp their style and they work hard a a lobby, as a group, to get that not to happen. certainly that would take away a lot of their oomph. right? margins are so small to begin with. >> talking about it in the newsroom. if we were not in a decimal system, still trading quarters and halves, would they be able to do that? >> wouldn't work. because the risk was too high. traded in a fractional environment, seven price points. 7/8, the next full figure. each tick 12.5 cents. an art, a science to walk into the crowd and understand bids, offer, supply and demand. in a decimal environment, 100 price points and maybe suck cede
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cede succeeded. >> were e have to leave it there, kenny. i'm afraid. >> ah! you're killing me. that does it for us. "street signs" is up next. >> nice to you have you here. >> nice to be here. >> "street signs." take it away. tech battles royale. amazon versus netflix and going's versus -- google? hi, folks. we'll explain. trust us. more on the positive signs the economy is showing. fight over negatives on yelp and one thing that's happening in real estate which may be the best news yet. fading away. that is what we have seen of the gains after the dow's very first record high of 2014. we'll keep an eye on what the markets are doing from here. >> all right. probably sitting at home or in a car or somewhere thinking, all right. so mandy told you record highs

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